Five other universities – Imperial College London, University College London, the London School of Economics, Edinburgh and Manchester – were included in the top 50, it was revealed.

But the table, published by Times Higher Education magazine, found that other big names had lost ground in the 2013 rankings, with increasing polarisation between a small band of elite British institutions and the rest.

In all, three representatives have dropped out of the top 100 since 2011, it emerged.

Shabana Mahmood, Labour’s shadow universities minister, said that Coalition cuts to university funding in comparison to other countries had created a “downward trend”.

“On their watch, it now seems the international standing of UK universities is starting to fall,” she said.

Phil Baty, the table’s editor, said: “Outside the chosen few, there is cause for alarm.

“Traditionally, the strength in depth of the UK system has been one of its great features. Having a large number of institutions with truly world-class standing has delivered huge returns for the whole sector and the wider economy.

“However, it now seems that a gap is opening up between the very best and the rest, with even household name institutions like Sheffield and Leeds losing their lustre and falling down the rankings.”

He added: “It would be bad news indeed for UK plc if the bulk of the UK’s world-class universities are relegated to the global lower leagues.”

The rankings are based on a survey of senior academics from across the world.

Harvard University and the Massachusetts Institute of Technology in the US were named as the top two universities in the world, followed by Cambridge in third.

Oxford was named fourth – up from six last year.

Five of the remaining positions in the top 10 went to US institutions, with Tokyo University in Japan being named ninth.

In all, the UK has nine representatives in the top 100 – second only to the US – but this is down from 2012 and 2011, when it had 12 among the world’s elite.

Sheffield, the London School of Hygiene and Tropical Medicine and Leeds have dropped out over the last two years.

The table’s editors said Britain should be concerned about the “rise of some leading Asian institutions”, with universities in Singapore, South Korea, Hong Kong and Taiwan all climbing the rankings.

University leaders defended Britain’s position but insisted more funding was needed to enable institutions to keep up with those from overseas.

Nicola Dandridge, chief executive of Universities UK, said: “We continue to spend less on higher education as a percentage of GDP than the average.

“We should remain acutely aware that other countries are investing more than the UK and that our reputation as a world-class provider of higher education is not a foregone conclusion.”

Wendy Piatt, director general of the Russell Group, which represents 24 top universities including Oxford and Cambridge, said: “Our universities punch well above their weight and do more with less, outperforming most rivals relative to expenditure.

“But if the UK is to remain a global leader in higher education, with truly world-class institutions, then the Government must concentrate investment where it will have the most impact.”